Stocks Fall on Disappointing Jobs Data

U.S. job growth slowed again in April, and the markets went south at the open. Steven Russolillo has the latest on Markets Hub.
Photo: Bloomberg.

This transcript has been automatically generated and may not be 100% accurate.

... I ... we are rallied on that chilly the big question right now to help me answer that one ... my colleague in MarketBeat my blogger told compete reader Steve Russolillo ... the so so disappointing there was ... talk about that briefly present there was a key deal going into the support everyone sort of where everyone brought down their expectations economist ratings ... us what everyone's saying OK get the headline what we expect is about a hundred sixty thousand so the concert expecting but ... you know ... we think it's can be busy with all the kids we got this week reading pointed to a weaker now so the number comes and and it's even worse than what those that those low expectations will booking when you could see a chart here hundred and fifteen thousand jobs added in April now unemployment rate going down eight point one percent but that's because the participation rate ... is much lower so that number is licensed eighty one a look at that Turkey trot up or sank eight ... when he can see want is the return of Palm spearmint green ... those are all spring spring of twenty ten spring twenty eleven spring or early winter in other early months of twenty eleven ... twenty ten in twenty twelve ... look at the last couple of months he get drop off ... again you are seeing a drop off ... in community average out the numbers the average of this year's job creation with every month but comes up about two hundred thousand which sounds good to ... know if you don't like Rachel doesn't the average desire ... but again the numbers are trending down well yes ... let's also keep in mind that the revisions in the previous month were actually posted higher so ... high that was for February and from work so he take the three-month moving average where we are now it's around a hundred and seventy six thousand jobs of the tube it's ... not terrible but not fantastic right and so I think this just puts more emphasis on the next report on the May report because ... that's really where you can see but that this new trend is that which is that sustainable or whether ... you know it's just a blip on the sky so there's me once the sun the next book but for now ... the stock markets are reacting mother this I mean it does this does if you had muted expectations going into it and it still undershot that ... that's a bad sign and that's the ... the market the Dow was up two points ... last month the two points separated the government again on the SNP Nasdaq were both down ... will rally that started in October has really petered out here ... well ... it's it's it's all the isthe and I think if you look at what's going on in the market and look at the difference and has a new looking who was leading was like so ... near the top the from the get from the October bottom right ... that's six seventh month around some of rally ... financials tech they were the big leaders in April they were actually the biggest losers and the biggest leaders in April where telecom utilities consumer staples the release of Federal offensive more so ... that shows the rotation rate there and that's almost like a predictor of what's gonna happen and that signals that people are just getting a little bit more caution that signals that the rally is topic right now so ... it's a bad day to day today it is that rate now on the market and it's been a tough week and so ... the big question now is you know ... are we set for a repeat of twenty ten twenty eleven we were not that the real bottom line is the unemployment rate I know keeps ticking down to how the Guinea will police the number one in really says anything anymore ... you mention the participation rate that is the real key one the fact that there are fewer and fewer and fewer people in the labor force ... that just means there are less people can produce for this economy ... that is an issue destination for corporate profits is a shoe for GDP to issue free body us to live off a week ... this is the situation for the marker right now and for the success of the month of that rally we were able to kind of ignore all that ... but to mind like to know that exchange I it's a great point I think when you look at the unemployment rate that old else is going to become ... its Guinea get as much attention going forward as right as it has in the past because ... it's not a true indicator of what's happening is that ... if it's going down that some of the bad thing because that means that the present station is going up for it to produce it is going up ... and that just means that it's it's not a good pick to play it and most people just don't believe anymore boy did he think ... what happens in May ... but ... I know it's it's early to what happens in May Sell in May going out to be cliche in the markets are on age ... what happens in the media ... I hate ... you kill anybody Play killing America ... personally I believe that ... that this may be just a blip on the screen I think that a lot of the jobless claims figures that we saw a wearers skewed by some seasonal factors and I think that you know the most recent jobless claims figures that we saw which were not on a ... chilly yesterday yes it is a play into the jobs report right ... those wretched pretty good and I think if you continue seen action I think you can see reverse in this in less than ... the with market tops kids are picking up again so I'm ... so hopeful sign that the hopefuls really means Apple it's a very